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CNOB Nasdaq· ConnectOne Bancorp Inc.
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CNOB Nasdaq· ConnectOne Bancorp Inc.
Earnings report Q4 2023

ConnectOne Bancorp, Inc. Reports Steady Revenue Growth in Latest Quarter

Segments of Revenue

ConnectOne Bancorp, Inc. reported total interest income of $128.96 million in the latest quarter, compared to $123.69 million in the previous quarter, $121.33 million in the second quarter, and $116.10 million in the first quarter. The company's net interest income was $61.82 million in the latest quarter, slightly lower than the previous quarter's $62.36 million but higher than the second quarter's $63.84 million and the first quarter's $67.08 million. ConnectOne Bancorp, Inc. also generated $4.21 million in total other income in the latest quarter, showing a consistent increase from $3.56 million in the previous quarter, $3.44 million in the second quarter, and $2.79 million in the first quarter.

Strengths

ConnectOne Bancorp, Inc. demonstrated steady revenue growth in the latest quarter, with total interest income increasing compared to the previous quarters. This growth can be attributed to the company's effective management of its interest-earning assets and liabilities. Additionally, the company's net interest income remained relatively stable, indicating a well-managed interest rate spread. ConnectOne Bancorp, Inc. also experienced consistent growth in total other income, which suggests successful diversification of its revenue streams.

Challenges

ConnectOne Bancorp, Inc. faced challenges in managing its provision for credit losses, which increased to $2.70 million in the latest quarter from $1.50 million in the previous quarter. This indicates a potential increase in credit risk and the need for the company to closely monitor its loan portfolio. Additionally, the company's income before income taxes decreased to $25.49 million in the latest quarter from $28.64 million in the previous quarter, reflecting a decline in overall profitability.

Noteworthy

ConnectOne Bancorp, Inc. authorized a share repurchase program in September 2021, allowing the company to buy back up to 2 million shares. This initiative demonstrates the company's confidence in its financial position and its commitment to enhancing shareholder value.

Summary

ConnectOne Bancorp, Inc. delivered a solid performance in the latest quarter, with steady revenue growth in both interest income and other income segments. The company's effective management of its interest-earning assets and liabilities contributed to this growth. However, challenges in managing credit losses and a decline in income before income taxes highlight the need for continued vigilance in risk management and profitability improvement. ConnectOne Bancorp, Inc.'s share repurchase program further underscores its commitment to creating value for shareholders.

Source documents

Form 10-K  filed on Feb 23, 2024
141 pages scanned

Reference data

Company financials Q4 revenue 63.3M
Analyst estimates Q4 EPS missed by -7.63%
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